The average annual inflation rate in the United States between 1890 and 2023 was approximately 2.07%. Using the compound interest formula, we can calculate the present-day value of one dollar from 1890:
Present-day value = $1 x (1 + Inflation rate)^Number of years
Present-day value = $1 x (1 + 0.0207)^133 (since 2023 - 1890 = 133 years)
Calculating the value, we get:
Present-day value ≈ $1 x (1.0207)^133
≈ $1 x 60.27
Therefore, one dollar in 1890 would be worth approximately $60.27 in today's money, considering the cumulative effects of inflation over the years.